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European start-up centres
By the end of 2016, London dethroned Berlin as Europe’s start-up capital with young entrepreneurs collecting €2.2 billion in investment capital in the city. Despite initially thriving in Europe, numerous political and socio-economic disputes including the likes of Brexit are set to disrupt London’s crown, paving the way for other cities across Europe to become the new start-up capital. Here, we’re taking a look at which city this is likely to be.
The impact of Brexit on London’s reign
Brexit is leaving the UK in a fragile state when it comes to investment opportunities and while a broad number of larger businesses are unfazed with the coming change, entrepreneurs are becoming somewhat concerned about what the UK’s future could consist of. While some newer entrepreneurs believe that London will retain its crown regardless, others have a strong belief that the gap will narrow between London and other cities in Europe when it comes to the race for the start-up capital title. Entrepreneurs are often optimistic in nature, but the uncertainty that surrounds Brexit is sure to provide a concerning atmosphere within and around the city. Could Brexit be London’s downfall? It is difficult to tell, but there are a number of cities that are ready to take the reins.
Hamburg is quickly becoming Europe’s top tech city, and as a result, there’s a chance that the city could take over as Europe’s start-up capital. London remains an attractive destination for many investors, but the soaring costs of living in the city could be deterring a growing number of entrepreneurs. In fact, Hamburg offers a promise of established business support networks which capitalise on foreign relationships and the city is even putting in significant resources in offering mentors and investors for entrepreneurs looking to start up in the city. Some of tech’s biggest companies of the likes of Xing, Google and Facebook have their presence here. With a number of established businesses outside of the tech industry operating here too due to the ongoing activity of one of the world’s oldest and busiest shipping ports, there’s plenty of opportunities for Hamburg to expand.
Paris has previously been seen to ‘lag’ behind the likes of Berlin and London who have taken the top spot in recent years, but there appears to be some changes in the air. Paris is a very well-connected city and the government is on hand to help SMEs with the introduction of the ‘auto-entrepreneur’ system. There are a few downsides to operating in Paris however, with high levels of taxation being a major deterrence for new start-ups. Nevertheless, if the French government tackle these effectively, Paris could quickly make its way up as the next European start-up capital – although a good understanding of French will be necessary for an entrepreneur to do well here!
Amsterdam is a leading hub in the global start-up ecosystem but is often overlooked. There are a high number of networking and mentoring events in the city, and as a result, the city ranks highly when it comes to access to accelerators. The city also paves the way for international reach as well as access to ample funding and crowdfunding. Young entrepreneurs can benefit from an excellent, business-friendly environment, which could see the city to evolve even further to the continent’s start-up capital.
While Hamburg is most favourable to take over the crown of European start-up capital, there are a number of other areas which new entrepreneurs should take into consideration. If you’re looking to relocate to set-up a business abroad, and you need help with the relocation process get in touch today.